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Take Profits on Auto Sector Strength

Toyota(TM) ($125.27) set its 2013 high at $130.99 on May 22 then traded down to $112.28 on June 6. The 50-day SMA is $120.18 with my weekly value level at $121.07 and monthly risky level at $134.78.

Tesla(TSLA) ($120.09) has become a spec stock for momentum traders setting its 2013 high at $121.89 on July 2. My monthly value level is $92.84 with a weekly risky level at $131.19.

Volkswagen(VLKAY) ($39.18) set its 2013 high at $47.77 on Feb. 2, then traded down to $34.30 on April 18. The auto maker is below its 50-day and 200-day SMAs at $40.48 and $39.98. My quarterly value level is $31.30 with a weekly risky level at $42.22.

Volvo(VOLVY) ($13.02) set its 2013 high at $15.82 on March 15 then traded as low as $12.86 on June 24. My quarterly value level is $8.21 with a weekly pivot at $13.77 and monthly risky level at $14.86. The stock is below its 50-day and 200-day SMAs at $14.17 and $14.25.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined
www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs
a "buy and trade" investment strategy and can be reached at
RSuttmeier@Gmail.com.